Grayling Announces Dealership Agreement with GPS Central for Virtual Wave Products and Services

CALGARY, Alberta--Oct. 1, 20041, 2004--Grayling Wireless USA Inc. ("GRYW")(Pink Sheets:GRYW) is pleased to announce that its recently acquired subsidiary Virtual Wave has signed its first North American sales dealership agreement with Mach Ten Enterprises Inc., a privately-held Canadian company that specializes in GPS products, trading as GPS Central.

GPS Central (www.gpscentral.ca) has focused on the sale of GPS equipment for the outdoor, marine, automotive and handheld aviation markets, but they also service many business, government and institutional customers. The company has been in business since 2000 and is the leading online dealer within Canada for GARMIN International Inc. GPS Central is also a GARMIN-Authorized Reseller of Aviation Handheld products and an Authorized Magellan Dealer.

Virtual Wave, an authorized Benefon distributor (www.benefon.com), will be supplying a full line of GPS tracking and cellular telephone products and accessories through GPS Central. In addition, Virtual Wave will be offering its RoadStarGPS location-based services (www.roadstargps.com) to GPS Central customers. RoadStarGPS includes roadside assistance, trip planning, location-based emergency services, SMS and Email broadcasting as well as real-time, turn-by-turn directions from RoadStar operators.

About Grayling:

GRYW, through its safety communications business unit, is an innovator and an integrator in wireless communications technology. The company's initial proprietary products are marketed under the brand name ClearCalm(TM) for worldwide distribution to targeted commercial markets seeking enhanced, hands-free communications in a variety of safety related applications. ClearCalm(TM) is ideally suited for personnel required to operate in extreme environments while using breathing-air masks. (Please visit www.gryw.com for further information).

GRYW, through its subsidiary Virtual Wave, is also engaged in GPS/cellular telecommunication products and related location-based services. Virtual Wave has initially focused on providing a stable foundation for growth from the company's African contracts. Virtual Wave is now positioned for an aggressive commercial roll-out of its products and services in North and South America.

This press release contains forward-looking statements within the definition of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Act of 1934, amended. These forward-looking statements should not be used to make an investment decision.